The Times’ Patrick Hosking points to yet another lambast against sort-termism. The Trouble with Strategyexplainswhy Finance is to blame for this, how Strategy should and can offer a solid alternative. In essence, the article [referring to Daniel Pinto’s Capital Wars ] argues that management, haunted by a minority of aggressive investors, pursue short-term profit targets and fail to make high-value investments for the future.

This is the second post in the fortnightly series of Strategy Dynamics Briefings. Despite a wide range of financial measures being available the interests of investors has led to the choice of one specific measure.

What is it?

(If you would like to receive the series from the beginning in your email inbox, please register on www.strategydynamics.com and subscribe to Briefings in “MyAccount”)

As you may know, strategy textbooks are largely devoted to commercial business situations, and as a result, the strategy ...

It’s hard enough dealing with current difficulties in a strategically sound way, but it’s not helped by actions that are pointless or counter-productive – examples below.

Some of these actions just might be unavoidable if the business is in real danger of collapse, but very few are in such a bad state. It seems most are doing these things for purely symbolic reasons – ‘We must be seen to be taking the problem seriously’ – or else to hold up short-term profitability ...